The Reserve Bank of India ( RBI ) has informed that there is no change the interest rates on Small Savings Schemes for the second quarter of financial year 2018-19 starting 1st July, 2018 and ending September 30, 2018.
On 27th December, a circular was issued by the Finance Ministry prescribing the rate of interest applicable to various small saving schemes such as savings deposits, Time deposits, Recurring deposits, Sukanya Samridhi Account Scheme etc., for the fourth quarter of financial year 2017-18 starting 1st January 2018 to 31st march 2018.
As per the circular, the Government reduced the interest rate for most of the savings schemes namely, Savings Deposits, Yearly deposits, 5 year National Savings Certificate, Public provident Fund Scheme, Kisan Vikas Patra, Sukanya Samridhi Account Scheme etc, for the second quarter of financial year 2017-18 starting from 1st July to 30th September, on the basis of interest compounding/ payment built-in in these schemes, was reduced.
For this quarter also, the RBI was directed to follow the same rates by the Government.
A notification issued by the RBI in this regard said that “The Government of India, has vide their Office Memorandum (OM) No.F.No.01/04/2016–NS dated July 2, 2018 has stated that the interest rates on Small Savings Schemes for the second quarter of financial year 2018-19 starting 1st July, 2018 and ending September 30, 2018 shall remain unchanged from those notified for the first quarter of FY 2018-19.”
Subscribe Taxscan Premium to view the Judgment
